What will happen to economy if India-US FTA doesn't happen? RBI Governor reveals
"The impact depends on to what extent tariffs are going to be applied. So, it's premature to answer. But obviously it will have some negative impact," Malhotra said during the post-monetary policy press conference in response to a query on the impact on the economy if the trade deal with the US fails to materialise. However, India has concluded or implemented a series of trade agreements in…
RBI Governor Sanjay Malhotra stated that the failure to finalize the India-US bilateral trade deal could negatively impact the Indian economy, but emphasized that trade agreements with other nations could help alleviate the consequences. The extent of the impact would depend on the level of tariffs imposed, making it premature to determine the exact repercussions.
Malhotra made these remarks during a post-monetary policy press conference when asked about the potential ramifications of the US trade deal not being realized. However, India has recently concluded or implemented several trade agreements, which can assist in diversifying its export markets. In addition, a series of trade agreements have been finalized or are currently in progress, including those with the UK, New Zealand, and several others in discussion.
These developments are anticipated to mitigate the negative effects should additional tariffs be applied to certain sectors.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
